The State Bank of Vietnam (SBV) has just issued Document No. 4462/NHNN-CSTT requesting credit institutions and foreign bank branches to implement several solutions regarding credit and interest rates.
Accordingly, the SBV requests credit institutions to continue to drastically implement solutions to reduce costs, simplify loan procedures, promote the application of information technology and digital transformation in the loan process, striving to reduce lending interest rates by 1-2% per year, especially for traditional growth drivers, emerging sectors, green transition, and circular economy, social housing, etc. This move aims to support businesses and individuals in production and business development and enhance their access to bank credit as directed by the Government and the Prime Minister. Maintaining a stable and reasonable deposit interest rate in line with capital balance, healthy credit expansion capacity, and risk management capability is also emphasized to stabilize the monetary and interest rate markets.
In addition, the management agency requests credit institutions to continue deploying effective credit growth solutions, accurately meeting the credit capital needs of the economy, directing credit to production and business areas, priority fields, and economic growth drivers. They are determined to implement practical and effective measures to strive for a credit growth rate of 5-6% for the entire system by the end of the second quarter of 2024, following the Government’s policy and the Prime Minister’s direction. Credit institutions are also required to tightly control credit in potential risk areas, ensuring safe and effective lending activities.
Furthermore, they are advised to actively review projects to ensure timely credit provision for feasible projects, expedite loan approval processes, and apply flexible and lawful measures and forms of loan collateralization that are convenient for borrowers. Credit institutions are also encouraged to diversify credit and banking services suitable for each customer segment, focusing on developing new credit products that meet the needs of people’s lives and consumption. Proactive and active communication about the policies, products, and services of credit institutions is essential to helping people and businesses understand and access their programs.
